By Andrea: http://oilshalegas.com
Evolution Petroleum Corp. (EPM) recently released an update on the Woodford shale located in Haskell County, Oklahoma:
"In Haskell County, which is where we have actually more potential, we initiated field operations on the first of two tests that we have planned for this fiscal year and this is a mid-depth Woodford in the 4 to 5000 foot depth range. We should have the initial results from the first well sometimes in this calendar year or in January."
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Showing posts with label natural gas. Show all posts
Showing posts with label natural gas. Show all posts
Tuesday, December 28, 2010
Monday, December 27, 2010
SM Energy Company (SM): Eagle Ford Shale News
By Andrea: http://oilshalegas.com
SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:
SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.
In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.
SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:
SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.
In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.
SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Skywest Energy Corp. (SKW.V): Cardium Shale Update
By Andrea: http://oilshalegas.com
Skywest Energy Corp.(SKW.V) has recently entered into two new farm-in transactions to acquire an additional 8.5 gross (5.1 net) Cardium sections. The Company has also acquired an additional 4.25 Cardium sections at recent Crown land sales. As a result, the Company has added an additional 35 net Cardium drilling locations. Skywest will now hold approximately 40 net sections of Cardium acreage.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Skywest Energy Corp.(SKW.V) has recently entered into two new farm-in transactions to acquire an additional 8.5 gross (5.1 net) Cardium sections. The Company has also acquired an additional 4.25 Cardium sections at recent Crown land sales. As a result, the Company has added an additional 35 net Cardium drilling locations. Skywest will now hold approximately 40 net sections of Cardium acreage.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Sunday, December 26, 2010
La Salle County, TX: Eagle Ford Shale Update
By Andrea: http://oilshalegas.com
SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:
SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.
In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.
SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:
SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.
In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.
SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Friday, December 24, 2010
Avoyelles Parish, LA: Austin Chalk Formation Update
By Andrea: http://oilshalegas.com
Pryme Oil and Gas Limited released an operational update announcing the delay of acidizing of Deshotels 20-H No. 1 well located in the Austin Chalk Formation of Avoyelles Parish, LA.
As a result of a pre-Christmas increase in the demand for oil field services, the contractor which has been engaged to acidize the perforated intervals in the horizontal leg of the Deshotels 20-H No.1 has been unable to attend to the job as scheduled. It is now expected that the acidizing will be carried out after Christmas. Flow testing of the well will follow the acidizing.
As discussed in previous announcements, it is expected that the Deshotels 20-H No.1 well will primarily produce oil. However, it is also expected that commercial quantities of natural gas will be produced. Trenching and laying of the flow line from the well to the natural gas sales line, a distance of approximately 4 miles, is underway.
Pryme has a 40% working interest (30% net revenue interest (NRI)) in this well.
The Deshotels 20-H No.1 well, in Pryme's Turner Bayou Chalk project in the North Bayou Jack Field, is the first deep well to be drilled within the Turner Bayou 3D seismic survey. The well has been drilled to a depth of 16,400 feet (5,000 metres) vertically with a 3,755 feet (1,144 metre) horizontal leg through the Austin Chalk formation which is predominantly oil bearing in this region. The well location was confirmed using high resolution 3D seismic data from a survey carried out in 2007 and data from surrounding well bores.
Turner Bayou is one of Pryme's high value projects. It is located in Avoyelles Parish, Louisiana. Pryme has a 40% interest in the Turner Bayou Chalk project area, which is contained within the Turner Bayou 3D seismic survey, and a 52% interest in the balance of Turner Bayou. The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Primary targets are contained within six prospective formations ranging in depth from the Frio formation at 3,000 feet, to the Tuscaloosa formation at 18,000 feet.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Pryme Oil and Gas Limited released an operational update announcing the delay of acidizing of Deshotels 20-H No. 1 well located in the Austin Chalk Formation of Avoyelles Parish, LA.
As a result of a pre-Christmas increase in the demand for oil field services, the contractor which has been engaged to acidize the perforated intervals in the horizontal leg of the Deshotels 20-H No.1 has been unable to attend to the job as scheduled. It is now expected that the acidizing will be carried out after Christmas. Flow testing of the well will follow the acidizing.
As discussed in previous announcements, it is expected that the Deshotels 20-H No.1 well will primarily produce oil. However, it is also expected that commercial quantities of natural gas will be produced. Trenching and laying of the flow line from the well to the natural gas sales line, a distance of approximately 4 miles, is underway.
Pryme has a 40% working interest (30% net revenue interest (NRI)) in this well.
The Deshotels 20-H No.1 well, in Pryme's Turner Bayou Chalk project in the North Bayou Jack Field, is the first deep well to be drilled within the Turner Bayou 3D seismic survey. The well has been drilled to a depth of 16,400 feet (5,000 metres) vertically with a 3,755 feet (1,144 metre) horizontal leg through the Austin Chalk formation which is predominantly oil bearing in this region. The well location was confirmed using high resolution 3D seismic data from a survey carried out in 2007 and data from surrounding well bores.
Turner Bayou is one of Pryme's high value projects. It is located in Avoyelles Parish, Louisiana. Pryme has a 40% interest in the Turner Bayou Chalk project area, which is contained within the Turner Bayou 3D seismic survey, and a 52% interest in the balance of Turner Bayou. The Turner Bayou project comprises approximately 80 square miles (50,000 acres) which have been imaged by a proprietary 3D seismic survey. Primary targets are contained within six prospective formations ranging in depth from the Frio formation at 3,000 feet, to the Tuscaloosa formation at 18,000 feet.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Wednesday, December 22, 2010
Webb County, TX: Eagle Ford Shale Update
By Andrea: http://oilshalegas.com
Regency Energy Partners (RGNC) recently announced a series of expansion projects along its rich gas gathering system in south Texas to meet increasing producer demand in the Eagle Ford Shale. Upon completion, these projects will provide an incremental 200 MMcf/d of capacity for the south Texas gathering system, allowing Regency to provide its customers with more robust gathering services.
"Regency's rich gas volumes in the south Texas region continue to ramp up and we have been aggressive in our plans to offer increased midstream services in the Eagle Ford Shale," said Mike Bradley, president and chief executive officer of Regency:
"Our current expansion projects position Regency for additional growth opportunities and will improve the operational efficiencies of our south Texas gathering system in this prolific shale play."
The expansions include:
The capital expenditures related to these expansions are already included in Regency's previously disclosed 2010 organic growth capital budget of $259 million and will be funded under its revolving credit facility. The expansion projects are scheduled to be completed in May 2011.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Regency Energy Partners (RGNC) recently announced a series of expansion projects along its rich gas gathering system in south Texas to meet increasing producer demand in the Eagle Ford Shale. Upon completion, these projects will provide an incremental 200 MMcf/d of capacity for the south Texas gathering system, allowing Regency to provide its customers with more robust gathering services.
"Regency's rich gas volumes in the south Texas region continue to ramp up and we have been aggressive in our plans to offer increased midstream services in the Eagle Ford Shale," said Mike Bradley, president and chief executive officer of Regency:
"Our current expansion projects position Regency for additional growth opportunities and will improve the operational efficiencies of our south Texas gathering system in this prolific shale play."
The expansions include:
- The construction of a 45-mile pipeline to loop a portion of the existing south Texas gathering system from western Webb County, Texas, to new facilities near I-35;
- The installation of 20,000 horsepower of compression;
- The installation of an additional 200 MMcf/d of dehydration capacity; and
- An additional 1,500 Bbl/d of stabilizer capacity.
The capital expenditures related to these expansions are already included in Regency's previously disclosed 2010 organic growth capital budget of $259 million and will be funded under its revolving credit facility. The expansion projects are scheduled to be completed in May 2011.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Karnes County, Texas: Eagle Ford Pipeline
By Andrea: http://oilshalegas.com
Koch Pipeline Company, L.P. recently announced that they will create the capacity to move an additional 120,000 barrels per day of Eagle Ford crude in late 2012. Koch Pipeline today received final shareholder approval to build a new pipeline into Karnes County, Texas.
“This will be our most extensive project to date to connect Eagle Ford producers with refineries in Corpus Christi,” said Kim Penner, president of Koch Pipeline. “It not only allows us to ship more crude oil to Corpus Christi refiners and to the Flint Hills Resources waterborne terminal at Ingleside, but it also improves our efficiency and reliability as this project includes new tanks and a new truck station.”
The new 16-inch line will have future expansion capability of more than 200,000 barrels per day and include direct pipeline connections to producer tank batteries in Karnes and DeWitt counties. A new station, likely near Helena, will connect into Koch Pipeline’s existing crude system in Pettus and Refugio.
Brad Urban, senior vice president of supply for Koch Pipeline’s affiliate Flint Hills Resources, said:
“This project fits well with our plan to process a large volume of South Texas crude oil and condensate at our Corpus Christi refinery as well as move a large volume of those products via the water. We continue to evaluate projects to enhance our Corpus Christi refinery processing capability and believe the majority of what we will refine in the future will be South Texas domestic crude oil and condensate.”
By the end of 2011, Koch Pipeline will have added 10 to 15 new employees and completed several other projects that add more than 140,000 barrels per day of new pipeline capacity in South Texas. The company is the largest transporter of South Texas crude oil. Engineering for the new pipeline to connect Eagle Ford producers to Corpus Christi, Texas, has begun. Construction, which will require numerous contractors, is expected once project permits are received.
“We are evaluating several other major pipeline projects in South Texas in addition to this one, including a project to connect producers in Western counties such as Dimmit and LaSalle,” Penner said. “We are working with producers and our affiliate Flint Hills Resources to ensure producers have transportation to markets for the rapid
growth of crude oil production projected in South Texas.”
Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 barrels of capafrom Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the
western counties of the Eagle Ford trend. Koch Pipeline operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in this growing production area.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Koch Pipeline Company, L.P. recently announced that they will create the capacity to move an additional 120,000 barrels per day of Eagle Ford crude in late 2012. Koch Pipeline today received final shareholder approval to build a new pipeline into Karnes County, Texas.
“This will be our most extensive project to date to connect Eagle Ford producers with refineries in Corpus Christi,” said Kim Penner, president of Koch Pipeline. “It not only allows us to ship more crude oil to Corpus Christi refiners and to the Flint Hills Resources waterborne terminal at Ingleside, but it also improves our efficiency and reliability as this project includes new tanks and a new truck station.”
The new 16-inch line will have future expansion capability of more than 200,000 barrels per day and include direct pipeline connections to producer tank batteries in Karnes and DeWitt counties. A new station, likely near Helena, will connect into Koch Pipeline’s existing crude system in Pettus and Refugio.
Brad Urban, senior vice president of supply for Koch Pipeline’s affiliate Flint Hills Resources, said:
“This project fits well with our plan to process a large volume of South Texas crude oil and condensate at our Corpus Christi refinery as well as move a large volume of those products via the water. We continue to evaluate projects to enhance our Corpus Christi refinery processing capability and believe the majority of what we will refine in the future will be South Texas domestic crude oil and condensate.”
By the end of 2011, Koch Pipeline will have added 10 to 15 new employees and completed several other projects that add more than 140,000 barrels per day of new pipeline capacity in South Texas. The company is the largest transporter of South Texas crude oil. Engineering for the new pipeline to connect Eagle Ford producers to Corpus Christi, Texas, has begun. Construction, which will require numerous contractors, is expected once project permits are received.
“We are evaluating several other major pipeline projects in South Texas in addition to this one, including a project to connect producers in Western counties such as Dimmit and LaSalle,” Penner said. “We are working with producers and our affiliate Flint Hills Resources to ensure producers have transportation to markets for the rapid
growth of crude oil production projected in South Texas.”
Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 barrels of capafrom Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the
western counties of the Eagle Ford trend. Koch Pipeline operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in this growing production area.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Enterprise Product Partners (EPD) and Chesapeake Energy Corp (CHK): Eagle Ford Shale Update
By Andrea: http://oilshalegas.com
Enterprise Products Partners L.P. (EPD) recently announced that they recently entered into a 10-year agreement with Chesapeake Energy Corp. (CHK) to handle a large portion of their natural gas production in the Eagle Ford Shale:
Chesapeake's gross acreage position currently comprises more than 625,000 acres in and around the oil and natural gas liquids - rich areas of the Eagle Ford Shale across Dimmit, LaSalle, McMullen, Webb, and Zavala counties located in South Texas. The agreements provide Chesapeake with a comprehensive package of midstream natural gas and NGL services, including firm commitments for gas transportation, processing, and NGL transportation and fractionation services.
"We are extremely pleased with our new agreements with Chesapeake, which represent one of the largest single producer commitments to date for Enterprise in the Eagle Ford Shale," said Michael A. Creel, Enterprise's president and chief executive officer. "The deal with Chesapeake marks the fifth major midstream transaction Enterprise has executed with Eagle Ford Shale producers in the past year, reflecting the strategic importance of our integrated and expanding assets serving the various demands of producers in the prolific region."
Enterprise has previously announced long-term commitments with Petrohawk, EOG, Anadarko and Pioneer.
Chesapeake's NGL-rich natural gas will initially be gathered and compressed by Chesapeake affiliate, Chesapeake Midstream Development, LLC, for delivery to a central location. Enterprise will then transport and process the NGL-rich gas at its existing facilities while a previously announced natural gas processing plant that is currently under development in Texas is completed. This cryogenic processing facility, expected to be completed early in 2012, is designed for an initial capacity of 600 million cubic feet per day (MMcf/d) and with an initial capability to extract as many as 75,000 barrels per day (BPD) of NGLs.
The NGL production from Chesapeake's gas will ultimately be transported on Enterprise's previously announced 127-mile NGL pipeline that will extend from the new gas processing plant to Enterprise's NGL fractionation complex in Mont Belvieu, Texas. This new NGL pipeline, also scheduled for completion in early 2012, is expected to have an initial capacity of more than 85,000 BPD and would be readily expandable to over 120,000 BPD.
Activity in the Eagle Ford Shale continues to increase as approximately 115 rigs working in the play have drilled more than 330 wells completed to date. Total current production from the play is estimated at approximately 425 MMcf/d of natural gas and 35,000 BPD of crude oil and condensate.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Enterprise Products Partners L.P. (EPD) recently announced that they recently entered into a 10-year agreement with Chesapeake Energy Corp. (CHK) to handle a large portion of their natural gas production in the Eagle Ford Shale:
Chesapeake's gross acreage position currently comprises more than 625,000 acres in and around the oil and natural gas liquids - rich areas of the Eagle Ford Shale across Dimmit, LaSalle, McMullen, Webb, and Zavala counties located in South Texas. The agreements provide Chesapeake with a comprehensive package of midstream natural gas and NGL services, including firm commitments for gas transportation, processing, and NGL transportation and fractionation services.
"We are extremely pleased with our new agreements with Chesapeake, which represent one of the largest single producer commitments to date for Enterprise in the Eagle Ford Shale," said Michael A. Creel, Enterprise's president and chief executive officer. "The deal with Chesapeake marks the fifth major midstream transaction Enterprise has executed with Eagle Ford Shale producers in the past year, reflecting the strategic importance of our integrated and expanding assets serving the various demands of producers in the prolific region."
Enterprise has previously announced long-term commitments with Petrohawk, EOG, Anadarko and Pioneer.
Chesapeake's NGL-rich natural gas will initially be gathered and compressed by Chesapeake affiliate, Chesapeake Midstream Development, LLC, for delivery to a central location. Enterprise will then transport and process the NGL-rich gas at its existing facilities while a previously announced natural gas processing plant that is currently under development in Texas is completed. This cryogenic processing facility, expected to be completed early in 2012, is designed for an initial capacity of 600 million cubic feet per day (MMcf/d) and with an initial capability to extract as many as 75,000 barrels per day (BPD) of NGLs.
The NGL production from Chesapeake's gas will ultimately be transported on Enterprise's previously announced 127-mile NGL pipeline that will extend from the new gas processing plant to Enterprise's NGL fractionation complex in Mont Belvieu, Texas. This new NGL pipeline, also scheduled for completion in early 2012, is expected to have an initial capacity of more than 85,000 BPD and would be readily expandable to over 120,000 BPD.
Activity in the Eagle Ford Shale continues to increase as approximately 115 rigs working in the play have drilled more than 330 wells completed to date. Total current production from the play is estimated at approximately 425 MMcf/d of natural gas and 35,000 BPD of crude oil and condensate.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
SM Energy Company (SM): Permian Basin Update
By Andrea: http://oilshalegas.com
SM Energy Company (SM) recently announced that it plans to spend $40 million in the Permian Basin, with approximately $20 million expected to be invested in Wolfberry wells in 2011. The majority of this program will be operated by an outside partner. The remaining Permian Basin budget will be allocated to various other plays in the basin.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
SM Energy Company (SM) recently announced that it plans to spend $40 million in the Permian Basin, with approximately $20 million expected to be invested in Wolfberry wells in 2011. The majority of this program will be operated by an outside partner. The remaining Permian Basin budget will be allocated to various other plays in the basin.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Webb County, TX: Eagle Ford Shale Update
By Andrea: http://oilshalegas.com
SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:
SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.
In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.
SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
SM Energy Company (SM) recently released an operational update on the Eagle Ford Shale located in Webb and LaSalle County,TX:
SM Energy Company (SM) plans to begin 2011 operating two (2) drilling rigs on its high working interest 165,000 net acre position in Webb and La Salle counties in South Texas. Over the course of the year, the Company plans to ramp its operated rig count to four (4) drilling rigs, the vast majority of which will target portions of the acreage containing rich gas and condensate. Most of the wells planned for the year will be in the Briscoe and Galvan Ranch program areas where SM Energy has been active during 2010. A higher level of activity is also planned for La Salle County, Texas in order to de-risk and delineate that portion of the Company's acreage. In addition, a number of projects such as retained energy fracture stimulations and reduced spacing pilots are planned for next year across the play. Projects in the Eagle Ford shale program make up the largest portion of the Company's facilities budget of $65 million.
In the partner-operated portion of SM Energy's 84,500 net acre position prospective for the Eagle Ford shale, seven (7) rigs are currently being operated by the Company's partner, Anadarko Petroleum Company (APC). For 2011, SM Energy anticipates that Anadarko will operate an average of ten (10) rigs for the year.
SM Energy has allocated approximately $500 million for drilling investment in its total Eagle Ford shale position for 2011. Based on the activity levels contemplated above, capital expenditures net to the Company would be in excess of this amount next year. The Company is initiating a marketing process to sell down or joint venture a portion of its total position in the play, which will lead to a smaller amount of net investment in 2011. Bank of America Merrill Lynch has been engaged to market the Eagle Ford shale package on behalf of the Company. Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Saturday, November 20, 2010
Jefferson County, MS: Haynesville Shale Update
By Andrea: http://oilshalegas.com
Mainland Resources, Inc. (MNLU.OB) recently announced an update on the Haynesville Shale, located in Jefferson County, MS:
As of September 27, 2010, the Company is drilling ahead on the Burkley-Phillips No.1 well at 16,531 feet. Since the last activity update on August 16, 2010, the Company drilled to a depth of 12,940 feet where it conducted electric line logging, acquired side-wall cores in selected zones and successfully installed and cemented a 9 5/8” casing string. As previously reported, the well penetrated a sand package preliminarily identified as the Lower Tuscaloosa Massive Sand with approximately 50 feet of thickness exhibiting elevated mud log gas readings. Further analysis of the sand, utilizing electric line logging and side-wall cores, has warranted the initiation of a technical and commercial analysis, which is currently in progress.
The forward plan calls for drilling operations to continue to a depth of approximately 19,200 feet where wireline logging will be conducted to analyze the current open-hole interval and then a string of protective casing will be installed and cemented. At that point, the Company will begin drilling the final section of the well targeting the Haynesville Shale and will continue the drilling program to an anticipated depth of 22,000 feet.
Nick Atencio, CEO, states, “We are pleased with the drilling progress to this point and anticipate we will continue to make similar progress to the programmed total depth. As warranted, we will continue to analyze any secondary targets we encounter as we drill through the Hosston and Cotton Valley intervals.”
Management will continue to provide updates as milestone events are reached on the well.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Mainland Resources, Inc. (MNLU.OB) recently announced an update on the Haynesville Shale, located in Jefferson County, MS:
As of September 27, 2010, the Company is drilling ahead on the Burkley-Phillips No.1 well at 16,531 feet. Since the last activity update on August 16, 2010, the Company drilled to a depth of 12,940 feet where it conducted electric line logging, acquired side-wall cores in selected zones and successfully installed and cemented a 9 5/8” casing string. As previously reported, the well penetrated a sand package preliminarily identified as the Lower Tuscaloosa Massive Sand with approximately 50 feet of thickness exhibiting elevated mud log gas readings. Further analysis of the sand, utilizing electric line logging and side-wall cores, has warranted the initiation of a technical and commercial analysis, which is currently in progress.
The forward plan calls for drilling operations to continue to a depth of approximately 19,200 feet where wireline logging will be conducted to analyze the current open-hole interval and then a string of protective casing will be installed and cemented. At that point, the Company will begin drilling the final section of the well targeting the Haynesville Shale and will continue the drilling program to an anticipated depth of 22,000 feet.
Nick Atencio, CEO, states, “We are pleased with the drilling progress to this point and anticipate we will continue to make similar progress to the programmed total depth. As warranted, we will continue to analyze any secondary targets we encounter as we drill through the Hosston and Cotton Valley intervals.”
Management will continue to provide updates as milestone events are reached on the well.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Thursday, October 28, 2010
Comstock Resources, Inc. (CRK): Bossier Shale Update
By Andrea: http://oilshalegas.com
Comstock Resources, Inc. (CRK) today provided an update on the Bossier Shale located in North Louisiana:
As was previously reported with the Company's second quarter operating results, Comstock has been experiencing significant delays in completing its Haynesville or Bossier shale wells due to the limited availability of high pressure pumping services. On September 30, 2010 the Company has 26 Haynesville or Bossier shale wells drilled and waiting on completion. Going forward, Comstock has been successful in obtaining pressure pumping and other related services which will allow it to frac 14 wells before the end of the year. With six operated rigs drilling in the Haynesville and Bossier shale, Comstock expects to drill another ten wells in the fourth quarter giving the Company an estimated 22 wells to carry over into 2011 for completion. In response to the weak natural gas prices, Comstock plans to release one of the six rigs in November and is considering moving an additional rig to South Texas to be utilized in its Eagle Ford shale drilling program in 2011.
Comstock also announced today that the Company has entered into an agreement with a major service provider to provide the Company with a dedicated frac crew for its North Louisiana operations in early 2011. The dedicated crew will allow the Company to complete its backlog of Haynesville and Bossier shale wells during 2011 as well as keep current with the Company's 2011 anticipated drilling activity. In addition, Comstock is in the process of finalizing agreements for completion services for its 2010 and anticipated 2011 Eagle Ford shale drilling program in South Texas.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Comstock Resources, Inc. (CRK) today provided an update on the Bossier Shale located in North Louisiana:
As was previously reported with the Company's second quarter operating results, Comstock has been experiencing significant delays in completing its Haynesville or Bossier shale wells due to the limited availability of high pressure pumping services. On September 30, 2010 the Company has 26 Haynesville or Bossier shale wells drilled and waiting on completion. Going forward, Comstock has been successful in obtaining pressure pumping and other related services which will allow it to frac 14 wells before the end of the year. With six operated rigs drilling in the Haynesville and Bossier shale, Comstock expects to drill another ten wells in the fourth quarter giving the Company an estimated 22 wells to carry over into 2011 for completion. In response to the weak natural gas prices, Comstock plans to release one of the six rigs in November and is considering moving an additional rig to South Texas to be utilized in its Eagle Ford shale drilling program in 2011.
Comstock also announced today that the Company has entered into an agreement with a major service provider to provide the Company with a dedicated frac crew for its North Louisiana operations in early 2011. The dedicated crew will allow the Company to complete its backlog of Haynesville and Bossier shale wells during 2011 as well as keep current with the Company's 2011 anticipated drilling activity. In addition, Comstock is in the process of finalizing agreements for completion services for its 2010 and anticipated 2011 Eagle Ford shale drilling program in South Texas.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Monday, October 25, 2010
Comstock Resources, Inc. (CRK): Haynesville Shale Update
By Andrea: http://oilshalegas.com
Comstock Resources, Inc. (CRK) today provided an update on the Haynesville shale located in North Louisiana:
As was previously reported with the Company's second quarter operating results, Comstock has been experiencing significant delays in completing its Haynesville or Bossier shale wells due to the limited availability of high pressure pumping services. On September 30, 2010 the Company has 26 Haynesville or Bossier shale wells drilled and waiting on completion. Going forward, Comstock has been successful in obtaining pressure pumping and other related services which will allow it to frac 14 wells before the end of the year. With six operated rigs drilling in the Haynesville and Bossier shale, Comstock expects to drill another ten wells in the fourth quarter giving the Company an estimated 22 wells to carry over into 2011 for completion. In response to the weak natural gas prices, Comstock plans to release one of the six rigs in November and is considering moving an additional rig to South Texas to be utilized in its Eagle Ford shale drilling program in 2011.
Comstock also announced today that the Company has entered into an agreement with a major service provider to provide the Company with a dedicated frac crew for its North Louisiana operations in early 2011. The dedicated crew will allow the Company to complete its backlog of Haynesville and Bossier shale wells during 2011 as well as keep current with the Company's 2011 anticipated drilling activity. In addition, Comstock is in the process of finalizing agreements for completion services for its 2010 and anticipated 2011 Eagle Ford shale drilling program in South Texas.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Comstock Resources, Inc. (CRK) today provided an update on the Haynesville shale located in North Louisiana:
As was previously reported with the Company's second quarter operating results, Comstock has been experiencing significant delays in completing its Haynesville or Bossier shale wells due to the limited availability of high pressure pumping services. On September 30, 2010 the Company has 26 Haynesville or Bossier shale wells drilled and waiting on completion. Going forward, Comstock has been successful in obtaining pressure pumping and other related services which will allow it to frac 14 wells before the end of the year. With six operated rigs drilling in the Haynesville and Bossier shale, Comstock expects to drill another ten wells in the fourth quarter giving the Company an estimated 22 wells to carry over into 2011 for completion. In response to the weak natural gas prices, Comstock plans to release one of the six rigs in November and is considering moving an additional rig to South Texas to be utilized in its Eagle Ford shale drilling program in 2011.
Comstock also announced today that the Company has entered into an agreement with a major service provider to provide the Company with a dedicated frac crew for its North Louisiana operations in early 2011. The dedicated crew will allow the Company to complete its backlog of Haynesville and Bossier shale wells during 2011 as well as keep current with the Company's 2011 anticipated drilling activity. In addition, Comstock is in the process of finalizing agreements for completion services for its 2010 and anticipated 2011 Eagle Ford shale drilling program in South Texas.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Approach Resources: Permian Basin Update
By Andrea: http://oilshalegas.com
Approach Resources Inc. (AREX) recently released an operational update on the Permian Basin:
Approach identified the Wolffork through extensive regional mapping, using 3-D seismic data from over 135,000 acres and well data from over 400 wellbores that we have drilled and completed while targeting the deeper Canyon, Strawn and Ellenburger zones. The Wolffork is comprised of three stacked pay zones, the Clearfork, Dean and Wolfcamp Shale formations. Petrophysical analyses indicate more than 2,500 feet of gross pay from the Wolffork.
Based on log data and whole-core analyses, we believe that the Wolfcamp Shale has total organic carbon content ranging from 2.2% to 7.2%, porosity ranging from 4% to 11% (density porosity ranges from 8% to 15%) and high concentration of natural fractures.
Wolffork Reserve Potential
Approach estimates that, based on whole-core and detailed petrophysical analyses, there is significant potential oil and gas in place attributable to the Wolffork.
Formation Estimated
Oil and Gas In Place /
640 Acres (MMBoe)
Wolfcamp 118.9
Wolfcamp, Dean 125.6
Wolfcamp, Dean, Clearfork 181.7
The Wolfcamp Shale is over 1,000 feet thick and heavily fractured, ideal for horizontal drilling. We estimate 343 MBoe of potential recoverable reserves for a horizontal well targeting the Wolfcamp.
Results from Wolfcamp Shale Pilot Program and Estimated Ultimate Recovery ("EUR")
To date, we have recompleted four wells in the Wolfcamp Shale. All four pilot wells became producers. Based on our regional study, production data from our pilot wells and from adjacent operators, we estimate EURs ranging from 55 MBoe to 83 MBoe for a
Approach Resources Inc. (AREX) recently released an operationa
Wolfcamp recompletion, 90 MBoe to 135 MBoe for a Wolffork recompletion, 204 MBoe to 306 MBoe for a Canyon Wolffork new drill and 354 MBoe to 530 MBoe for a Wolfcamp horizontal well.
Fourth Quarter 2010 Plans
During the fourth quarter of 2010, we plan to further delineate the Wolffork trend across our acreage position. Our Wolffork pilot program for the fourth quarter of 2010 is outlined below.
* Drill one horizontal well, the Cinco Terry "M" 901-H, targeting the Wolfcamp Shale at the end of October 2010. Approach expects to complete the horizontal well during the first quarter of 2011.
* Recomplete the Cinco Terry 1601, targeting the Wolfcamp Shale zone.
* Recomplete two wells in Ozona Northeast, targeting the Wolffork.
* Complete the Baker "C" 1201, targeting the Wolffork and Canyon Sands zones.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Approach Resources Inc. (AREX) recently released an operational update on the Permian Basin:
Approach identified the Wolffork through extensive regional mapping, using 3-D seismic data from over 135,000 acres and well data from over 400 wellbores that we have drilled and completed while targeting the deeper Canyon, Strawn and Ellenburger zones. The Wolffork is comprised of three stacked pay zones, the Clearfork, Dean and Wolfcamp Shale formations. Petrophysical analyses indicate more than 2,500 feet of gross pay from the Wolffork.
Based on log data and whole-core analyses, we believe that the Wolfcamp Shale has total organic carbon content ranging from 2.2% to 7.2%, porosity ranging from 4% to 11% (density porosity ranges from 8% to 15%) and high concentration of natural fractures.
Wolffork Reserve Potential
Approach estimates that, based on whole-core and detailed petrophysical analyses, there is significant potential oil and gas in place attributable to the Wolffork.
Formation Estimated
Oil and Gas In Place /
640 Acres (MMBoe)
Wolfcamp 118.9
Wolfcamp, Dean 125.6
Wolfcamp, Dean, Clearfork 181.7
The Wolfcamp Shale is over 1,000 feet thick and heavily fractured, ideal for horizontal drilling. We estimate 343 MBoe of potential recoverable reserves for a horizontal well targeting the Wolfcamp.
Results from Wolfcamp Shale Pilot Program and Estimated Ultimate Recovery ("EUR")
To date, we have recompleted four wells in the Wolfcamp Shale. All four pilot wells became producers. Based on our regional study, production data from our pilot wells and from adjacent operators, we estimate EURs ranging from 55 MBoe to 83 MBoe for a
Approach Resources Inc. (AREX) recently released an operationa
Wolfcamp recompletion, 90 MBoe to 135 MBoe for a Wolffork recompletion, 204 MBoe to 306 MBoe for a Canyon Wolffork new drill and 354 MBoe to 530 MBoe for a Wolfcamp horizontal well.
Fourth Quarter 2010 Plans
During the fourth quarter of 2010, we plan to further delineate the Wolffork trend across our acreage position. Our Wolffork pilot program for the fourth quarter of 2010 is outlined below.
* Drill one horizontal well, the Cinco Terry "M" 901-H, targeting the Wolfcamp Shale at the end of October 2010. Approach expects to complete the horizontal well during the first quarter of 2011.
* Recomplete the Cinco Terry 1601, targeting the Wolfcamp Shale zone.
* Recomplete two wells in Ozona Northeast, targeting the Wolffork.
* Complete the Baker "C" 1201, targeting the Wolffork and Canyon Sands zones.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Sunday, October 24, 2010
Weld County, CO: Niobrara Shale Update
By Andrea: http://oilshalegas.com
Voyager Oil and Gas Inc. (VYOG.OB) recently released an update on the Niobrara Shale located in Weld County, CO:
Voyager recently participated with Slawson Exploration in three gross Niobrara well completions in the D-J Basin Niobrara play. Slawson is currently setting surface casing on 22 additional drilling locations that have been delineated and high-graded by initial results from the first three wells and other operator results in the area.
Bushwacker 24-11-67
The Bushwacker well is located in the western portion of Slawson's Weld County, Colorado lease block in Section 24, Township 11N, Range 67W. The well experienced significant geosteering issues in the Niobrara B formation and a majority of the lateral is believed to be low or out of the Niobrara B target zone. The well was recently completed with a 19-stage fracture stimulation and flowed back primarily frac fluids with a trace of oil. The well is temporarily shut in pending results of the Moonshine #1-36H and the Outlaw #1-16H. The well was drilled and completed for $3.0 million, below the AFE estimate of $4.2 million. We expect that the lateral portion of the well may be re-drilled and re-stimulated in either the Niobrara B or the Codell formation.
Moonshine #1-36H
The Moonshine well is located east of the Bushwacker well in Section 36, Township 11N, Range 65W Weld County, Colorado. The well experienced encouraging oil and gas shows in The Niobrara B formation during drilling and was recently completed with a 19-stage fracture stimulation. The well is currently flowing back primarily frac water with a 13% oil cut. Although the well is producing approximately 20 BOPD, the well will be placed on pump in late October and currently is expected to be a commercial producer. The well was drilled and completed for $3.29 million, below the AFE estimate of $4.2 million.
Outlaw 1-16H
The Outlaw well is located between the Moonshine and Bushwacker wells in Section 16, Township 11N, Range 66W Weld County, Colorado. The Outlaw well experienced encouraging oil and gas shows during drilling in the Niobrara B formation and is currently being completed. Three stages of the well were fracture stimulated and the fourth stage pressured out. The well is currently flowing back primarily frac water with a 3% oil cut. The remainder of the fracture stimulation is expected to be completed in late October. The well has incurred $1.3 million in drilling and completion costs to date and is expected to be fully completed for less than $3 million.
J.R. Reger commented, "We are encouraged by what we are seeing as we move east in the lease block with the Moonshine and the Outlaw wells. We are especially encouraged by the drilling and completion costs of approximately $3 million per well. We expect the Niobrara Play to continue to evolve and improve. Recent results by other operators in the area are beginning to come in and the operators are beginning to share data regarding target zone, azimuth (horizontal direction) and completion techniques. The horizontal Niobrara play is in its infancy and we expect the learning curve to be steep. Slawson is currently setting surface casing on 22 high-grade locations, based on the shows from the Moonshine and Outlaw wells. Slawson will commence drilling on the lease block when the surface casing is set on all 22 high-grade locations and additional field data regarding drilling and completions techniques has been received. Several of the high-grade locations are in the immediate vicinity of recent EOG results that have been very encouraging. Slawson and Voyager continue to acquire acreage in the core area of the play and we continue to add additional drilling opportunities to our inventory as the play evolves. We are excited about the pace with which this play is developing and we expect the data from these first 3 delineation wells to aid in our future leasing and drilling."
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Voyager Oil and Gas Inc. (VYOG.OB) recently released an update on the Niobrara Shale located in Weld County, CO:
Voyager recently participated with Slawson Exploration in three gross Niobrara well completions in the D-J Basin Niobrara play. Slawson is currently setting surface casing on 22 additional drilling locations that have been delineated and high-graded by initial results from the first three wells and other operator results in the area.
Bushwacker 24-11-67
The Bushwacker well is located in the western portion of Slawson's Weld County, Colorado lease block in Section 24, Township 11N, Range 67W. The well experienced significant geosteering issues in the Niobrara B formation and a majority of the lateral is believed to be low or out of the Niobrara B target zone. The well was recently completed with a 19-stage fracture stimulation and flowed back primarily frac fluids with a trace of oil. The well is temporarily shut in pending results of the Moonshine #1-36H and the Outlaw #1-16H. The well was drilled and completed for $3.0 million, below the AFE estimate of $4.2 million. We expect that the lateral portion of the well may be re-drilled and re-stimulated in either the Niobrara B or the Codell formation.
Moonshine #1-36H
The Moonshine well is located east of the Bushwacker well in Section 36, Township 11N, Range 65W Weld County, Colorado. The well experienced encouraging oil and gas shows in The Niobrara B formation during drilling and was recently completed with a 19-stage fracture stimulation. The well is currently flowing back primarily frac water with a 13% oil cut. Although the well is producing approximately 20 BOPD, the well will be placed on pump in late October and currently is expected to be a commercial producer. The well was drilled and completed for $3.29 million, below the AFE estimate of $4.2 million.
Outlaw 1-16H
The Outlaw well is located between the Moonshine and Bushwacker wells in Section 16, Township 11N, Range 66W Weld County, Colorado. The Outlaw well experienced encouraging oil and gas shows during drilling in the Niobrara B formation and is currently being completed. Three stages of the well were fracture stimulated and the fourth stage pressured out. The well is currently flowing back primarily frac water with a 3% oil cut. The remainder of the fracture stimulation is expected to be completed in late October. The well has incurred $1.3 million in drilling and completion costs to date and is expected to be fully completed for less than $3 million.
J.R. Reger commented, "We are encouraged by what we are seeing as we move east in the lease block with the Moonshine and the Outlaw wells. We are especially encouraged by the drilling and completion costs of approximately $3 million per well. We expect the Niobrara Play to continue to evolve and improve. Recent results by other operators in the area are beginning to come in and the operators are beginning to share data regarding target zone, azimuth (horizontal direction) and completion techniques. The horizontal Niobrara play is in its infancy and we expect the learning curve to be steep. Slawson is currently setting surface casing on 22 high-grade locations, based on the shows from the Moonshine and Outlaw wells. Slawson will commence drilling on the lease block when the surface casing is set on all 22 high-grade locations and additional field data regarding drilling and completions techniques has been received. Several of the high-grade locations are in the immediate vicinity of recent EOG results that have been very encouraging. Slawson and Voyager continue to acquire acreage in the core area of the play and we continue to add additional drilling opportunities to our inventory as the play evolves. We are excited about the pace with which this play is developing and we expect the data from these first 3 delineation wells to aid in our future leasing and drilling."
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Talisman Energy Inc. (TLM): Eagle Ford Shale Update
By Andrea: http://oilshalegas.com
Talisman Energy Inc. (TLM) recently announced that it has reached an agreement to acquire additional properties in the Eagle Ford shale play in south Texas. Talisman and Statoil have agreed on a joint-venture to acquire 97,000 net acres of high-quality, liquids rich Eagle Ford shale properties from Enduring Resources for a total consideration of US$1.325 billion.
"This transaction is an excellent fit with Talisman's strategy," said John A. Manzoni, President and CEO. "Talisman now has material positions in three world-class shale plays in North America. This acquisition is in the liquids rich window of the Eagle Ford and complements our existing acreage. We are very pleased to be working with Statoil, a respected global company with whom we have an excellent working relationship."
The Transaction
Talisman and Statoil have agreed to create a 50/50 joint-venture across the Eagle Ford shale play, with Talisman as the initial operator. The net cost to Talisman of this new acreage will be approximately US$485 million, after Statoil purchases a 50% working interest in Talisman's existing 37,000 net acres in the Eagle Ford. Upon completion of these transactions, Talisman will hold approximately 70,000 net acres, predominantly in the liquids rich heart of the play.
Talisman and Statoil have agreed that Statoil will operate approximately 50% of the joint assets within three years. The transaction is expected to close by year end.
The Assets
The acquisition includes 97,000 net acres of land (50/50 joint-venture between Talisman and Statoil) in the liquids rich window of the Eagle Ford shale. The purchase price equates to about US$10,900 per acre, taking into consideration Enduring's existing production of 5,500 boe/d, as well as gas processing infrastructure that comes with the acquisition. In addition, the companies have an option to jointly acquire up to an additional 22,000 net acres.
Approximately 55,000 net acres are held by existing production. There are currently three horizontal rigs operating on the leases, which is more than sufficient to hold this land. The land position consists of large contiguous blocks across the Eagle Ford, with a thick, high-porosity shale section, and high expected ultimate recovery factors (EURs). EURs are expected to average at least 660,000 boe per well.
There is currently 5,500 boe/d of production, including six Eagle Ford wells which are on-stream. An additional eight wells have been drilled; three wells are drilling, with nine additional wells planned by year-end. Initial production rates on the two most recent wells have averaged 3,700 boe/d (including 1,000 bbl/d of liquids) and 2,300 boe/d (including 425 bbl/d of liquids). There are numerous egress options available to support future production growth.
Strategic Context
The company believes there is an estimated 800 million boe of net contingent resource on the acquired properties, of which approximately 50% is expected to be condensate or natural gas liquids. Talisman estimates there are over 1,000 net drilling locations on the newly acquired acreage. The company believes that similar to its Marcellus and Montney shale plays, its Eagle Ford play will have a full-cycle break even of less than US$4 per mcf.
Shale gas and liquids development is an important part of Talisman's strategy for long-term, profitable growth. The company has established large, high-quality land positions in the Marcellus shale (Pennsylvania), Montney shale (British Columbia) and Utica shale (Quebec).
The addition of this new acreage gives Talisman a material core position in the liquids rich window of the Eagle Ford shale play. The company believes its shale plays have the critical mass needed to support Talisman's objective of becoming a leading, returns focused shale producer in North America.
The company is committed to operating in a safe, environmentally responsible manner and to maintaining good working relationships with local communities near our areas of operations.
Barclays Capital acted as an advisor to Talisman on this transaction.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Talisman Energy Inc. (TLM) recently announced that it has reached an agreement to acquire additional properties in the Eagle Ford shale play in south Texas. Talisman and Statoil have agreed on a joint-venture to acquire 97,000 net acres of high-quality, liquids rich Eagle Ford shale properties from Enduring Resources for a total consideration of US$1.325 billion.
"This transaction is an excellent fit with Talisman's strategy," said John A. Manzoni, President and CEO. "Talisman now has material positions in three world-class shale plays in North America. This acquisition is in the liquids rich window of the Eagle Ford and complements our existing acreage. We are very pleased to be working with Statoil, a respected global company with whom we have an excellent working relationship."
The Transaction
Talisman and Statoil have agreed to create a 50/50 joint-venture across the Eagle Ford shale play, with Talisman as the initial operator. The net cost to Talisman of this new acreage will be approximately US$485 million, after Statoil purchases a 50% working interest in Talisman's existing 37,000 net acres in the Eagle Ford. Upon completion of these transactions, Talisman will hold approximately 70,000 net acres, predominantly in the liquids rich heart of the play.
Talisman and Statoil have agreed that Statoil will operate approximately 50% of the joint assets within three years. The transaction is expected to close by year end.
The Assets
The acquisition includes 97,000 net acres of land (50/50 joint-venture between Talisman and Statoil) in the liquids rich window of the Eagle Ford shale. The purchase price equates to about US$10,900 per acre, taking into consideration Enduring's existing production of 5,500 boe/d, as well as gas processing infrastructure that comes with the acquisition. In addition, the companies have an option to jointly acquire up to an additional 22,000 net acres.
Approximately 55,000 net acres are held by existing production. There are currently three horizontal rigs operating on the leases, which is more than sufficient to hold this land. The land position consists of large contiguous blocks across the Eagle Ford, with a thick, high-porosity shale section, and high expected ultimate recovery factors (EURs). EURs are expected to average at least 660,000 boe per well.
There is currently 5,500 boe/d of production, including six Eagle Ford wells which are on-stream. An additional eight wells have been drilled; three wells are drilling, with nine additional wells planned by year-end. Initial production rates on the two most recent wells have averaged 3,700 boe/d (including 1,000 bbl/d of liquids) and 2,300 boe/d (including 425 bbl/d of liquids). There are numerous egress options available to support future production growth.
Strategic Context
The company believes there is an estimated 800 million boe of net contingent resource on the acquired properties, of which approximately 50% is expected to be condensate or natural gas liquids. Talisman estimates there are over 1,000 net drilling locations on the newly acquired acreage. The company believes that similar to its Marcellus and Montney shale plays, its Eagle Ford play will have a full-cycle break even of less than US$4 per mcf.
Shale gas and liquids development is an important part of Talisman's strategy for long-term, profitable growth. The company has established large, high-quality land positions in the Marcellus shale (Pennsylvania), Montney shale (British Columbia) and Utica shale (Quebec).
The addition of this new acreage gives Talisman a material core position in the liquids rich window of the Eagle Ford shale play. The company believes its shale plays have the critical mass needed to support Talisman's objective of becoming a leading, returns focused shale producer in North America.
The company is committed to operating in a safe, environmentally responsible manner and to maintaining good working relationships with local communities near our areas of operations.
Barclays Capital acted as an advisor to Talisman on this transaction.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Wednesday, October 20, 2010
Kern County, CA - Occidental Petroleum OXY
By Tim - http://oilshalegas.com
Occidental Petroleum Corporation (OXY) reported earnings yesterday and updated investors on their Kern County, California oil field discovery.
Turning now to California. During the first nine months of the year, we drilled seven conventional exploration extension wells in California. Of these, five were outside the Kern County discovery area; two of these wells are currently being tested. We also drilled 12 unconventional exploration wells in the first nine months of this year, of which three are successful and five are being tested.
In the fourth quarter, we expect to drill ten exploration wells of which two will be conventional, the remaining eight wells unconventional. In the fourth quarter, our exploration program will target smaller prospects until permits are obtained to the larger ones.
We’ve also drilled 13 conventional exploitation wells in the Kern County discovery area and 15 unconventional exploitation wells California in the first nine months. Due to delays in permitting we’ve reduced our exploitation plans in the second half of the year by about 10 wells.
http://seekingalpha.com/article/230950-occidental-petroleum-management-discussion-q3-2010-results-earnings-call-transcript?find=kern
For more updates, visit http://blackberrystocks.blogspot.com
For updates on the stock market, visit http://daytradingstockblog.blogspot.com
Occidental Petroleum Corporation (OXY) reported earnings yesterday and updated investors on their Kern County, California oil field discovery.
Turning now to California. During the first nine months of the year, we drilled seven conventional exploration extension wells in California. Of these, five were outside the Kern County discovery area; two of these wells are currently being tested. We also drilled 12 unconventional exploration wells in the first nine months of this year, of which three are successful and five are being tested.
In the fourth quarter, we expect to drill ten exploration wells of which two will be conventional, the remaining eight wells unconventional. In the fourth quarter, our exploration program will target smaller prospects until permits are obtained to the larger ones.
We’ve also drilled 13 conventional exploitation wells in the Kern County discovery area and 15 unconventional exploitation wells California in the first nine months. Due to delays in permitting we’ve reduced our exploitation plans in the second half of the year by about 10 wells.
http://seekingalpha.com/article/230950-occidental-petroleum-management-discussion-q3-2010-results-earnings-call-transcript?find=kern
For more updates, visit http://blackberrystocks.blogspot.com
For updates on the stock market, visit http://daytradingstockblog.blogspot.com
Friday, October 15, 2010
Jefferson County, MS: Haynesville Shale Update
By Andrea: http://oilshalegas.com
Mainland Resources, Inc. (MNLU.OB)recently released an update on the progress of drilling operations at its Burkley- Phillips No.1 well in the Haynesville Shale, located Jefferson County Mississippi:
As of September 27, 2010, the Company is drilling ahead on the Burkley-Phillips No.1 well at 6,531 feet. Since the last activity update on August 16, 2010, the Company drilled to a depth of 12,940 feet where it conducted electric line logging, acquired side-wall cores in selected zones and successfully installed and cemented a 9 5/8” casing string. As previously reported, the well penetrated a sand package preliminarily identified as the Lower Tuscaloosa Massive Sand with approximately 50 feet of thickness exhibiting elevated mud log gas readings. Further analysis of the sand, utilizing electric line logging and side-wall cores, has warranted the initiation of a technical and commercial analysis, which is currently in progress.
The forward plan calls for drilling operations to continue to a depth of approximately 19,200 feet where wireline logging will be conducted to analyze the current open-hole interval and then a string of protective casing will be installed and cemented. At that point, the Company will begin drilling the final section of the well targeting the Haynesville Shale and will continue the drilling program to an anticipated depth of 22,000 feet.
Nick Atencio, CEO, states, “We are pleased with the drilling progress to this point and anticipate we will continue to make similar progress to the programmed total depth. As warranted, we will continue to analyze any secondary targets we encounter as we drill through the Hosston and Cotton Valley intervals.” Management will continue to provide updates as milestone events are reached on the well.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Mainland Resources, Inc. (MNLU.OB)recently released an update on the progress of drilling operations at its Burkley- Phillips No.1 well in the Haynesville Shale, located Jefferson County Mississippi:
As of September 27, 2010, the Company is drilling ahead on the Burkley-Phillips No.1 well at 6,531 feet. Since the last activity update on August 16, 2010, the Company drilled to a depth of 12,940 feet where it conducted electric line logging, acquired side-wall cores in selected zones and successfully installed and cemented a 9 5/8” casing string. As previously reported, the well penetrated a sand package preliminarily identified as the Lower Tuscaloosa Massive Sand with approximately 50 feet of thickness exhibiting elevated mud log gas readings. Further analysis of the sand, utilizing electric line logging and side-wall cores, has warranted the initiation of a technical and commercial analysis, which is currently in progress.
The forward plan calls for drilling operations to continue to a depth of approximately 19,200 feet where wireline logging will be conducted to analyze the current open-hole interval and then a string of protective casing will be installed and cemented. At that point, the Company will begin drilling the final section of the well targeting the Haynesville Shale and will continue the drilling program to an anticipated depth of 22,000 feet.
Nick Atencio, CEO, states, “We are pleased with the drilling progress to this point and anticipate we will continue to make similar progress to the programmed total depth. As warranted, we will continue to analyze any secondary targets we encounter as we drill through the Hosston and Cotton Valley intervals.” Management will continue to provide updates as milestone events are reached on the well.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Sunday, October 10, 2010
Greene County, PA - Marcellus Shale Update
By Andrea: http://oilshalegas.com
EQT Corporation (EQT) recently reported and update on the Marcellus Shale in Greene County and Armstrong County, PA:
In Greene County, PA, EQT Corporation (EQT) reported an average 30-day production rate of 22 MMcfe per day from the Cooper 590384 well. The well has a total lateral length of 9,000 feet, with 8,411 feet of stimulated pay, and was completed using a 28-stage frac. The direct well cost was approximately $7.1 million, with a preliminary estimated ultimate recovery of 18 Bcf. As noted on EQT's most recent conference call, this well was in process of being completed in late July.
EQT also announced today, the successful results of the Rosborough 590259 well in Armstrong County, PA. This well reported a 24-hour IP of 15 MMcfe from 4,060 feet of stimulated pay.
"These exceptional wells are the direct result of our culture of innovation at EQT," commented Steven Schlotterbeck, President, EQT Exploration & Production. "The success of the Greene County extended lateral well is an important step in our effort to decrease the development cost per Mcfe. In addition to extending the lateral, we are experimenting with closer spacing intervals than our current 1,000 foot lateral spacing design in Greene County.
"The results in Armstrong County, where EQT holds nearly 34,000 acres, are especially encouraging as this well employed a new completion design resulting in initial flow rates significantly better than nearby wells completed conventionally. The success of these two experimental wells is a testament to the quality of our acreage position and to the outstanding capabilities of the technical and operating teams at EQT," said Schlotterbeck.
EQT holds a 100% working interest and an 87.5% net revenue interest in both wells.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
EQT Corporation (EQT) recently reported and update on the Marcellus Shale in Greene County and Armstrong County, PA:
In Greene County, PA, EQT Corporation (EQT) reported an average 30-day production rate of 22 MMcfe per day from the Cooper 590384 well. The well has a total lateral length of 9,000 feet, with 8,411 feet of stimulated pay, and was completed using a 28-stage frac. The direct well cost was approximately $7.1 million, with a preliminary estimated ultimate recovery of 18 Bcf. As noted on EQT's most recent conference call, this well was in process of being completed in late July.
EQT also announced today, the successful results of the Rosborough 590259 well in Armstrong County, PA. This well reported a 24-hour IP of 15 MMcfe from 4,060 feet of stimulated pay.
"These exceptional wells are the direct result of our culture of innovation at EQT," commented Steven Schlotterbeck, President, EQT Exploration & Production. "The success of the Greene County extended lateral well is an important step in our effort to decrease the development cost per Mcfe. In addition to extending the lateral, we are experimenting with closer spacing intervals than our current 1,000 foot lateral spacing design in Greene County.
"The results in Armstrong County, where EQT holds nearly 34,000 acres, are especially encouraging as this well employed a new completion design resulting in initial flow rates significantly better than nearby wells completed conventionally. The success of these two experimental wells is a testament to the quality of our acreage position and to the outstanding capabilities of the technical and operating teams at EQT," said Schlotterbeck.
EQT holds a 100% working interest and an 87.5% net revenue interest in both wells.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Tuesday, September 28, 2010
Callon Petroleum Corp. - Haynesville Shale update
By Andrea: http://oilshalegas.com
Callon Petroleum Corp. (CPE) has successfully completed its first Haynesville Shale well in north Louisiana. The George R. Mills No. 1H Well was placed on production on September 3, 2010. The rate is being restricted to between 10 and 12 gross MMcfe/d to prevent any damage to the completion and maximize ultimate recovery. The well is currently flowing up the casing at a rate of 10.5 gross MMcfe/d on an 18/64-inch choke and a wellhead casing pressure of 7,000 pounds per square inch. The well continues to cleanup while flowing back at restricted rates. Callon has no remaining drilling obligations in its Haynesville Shale position and currently plans to remobilize a rig to the area once natural gas prices warrant continued development.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Callon Petroleum Corp. (CPE) has successfully completed its first Haynesville Shale well in north Louisiana. The George R. Mills No. 1H Well was placed on production on September 3, 2010. The rate is being restricted to between 10 and 12 gross MMcfe/d to prevent any damage to the completion and maximize ultimate recovery. The well is currently flowing up the casing at a rate of 10.5 gross MMcfe/d on an 18/64-inch choke and a wellhead casing pressure of 7,000 pounds per square inch. The well continues to cleanup while flowing back at restricted rates. Callon has no remaining drilling obligations in its Haynesville Shale position and currently plans to remobilize a rig to the area once natural gas prices warrant continued development.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
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